Nordstrom is winding down its operations in Canada, becoming just the latest U.S. retailer to cut its losses in the country.
Seattle-based Nordstrom said it plans to liquidate its inventory at 13 locations across Canada and cease operations of its e-commerce platform in that country.
The Canadian business has not been profitable for Nordstrom, which entered the market in 2014, according to the statement. The Canadian e-commerce platform stopped operations immediately while the stores — six Nordstroms and seven Nordstrom Racks across Ontario, Alberta and British Columbia — are expected to close by late June.
Exiting Canada is expected to "enable us to simplify our operations and further increase our focus on driving long-term profitable growth in our core U.S. business," CEO Erik Nordstrom said in the statement.
The closings represent the second big U.S. retailer pulling out of Canada this year with Bed Bath & Beyond's announcement in February that it was ceasing operations in Canada, and closing 65 stores that it could no longer afford to provide with financial support.
Bed Bath & Beyond and Nordstrom Canada both sought protection from the Ontario Superior Court of Justice's Companies’ Creditors Arrangement Act, which is similar to U.S. Chapter 11 bankruptcy law, in regards to their store closures in Canada.
One retail analyst considers Nordstrom's Canadian closings as evidence of the company's larger difficulties.
"Although the division is relatively small, and the Canadian market has somewhat limited potential because of its size, it is nevertheless a significant admission of failure that Nordstrom cannot make its proposition work financially," Neil Saunders, managing director of GlobalData, said in a note. "It also underlines the rather tenuous position of the company which wants to focus is finances and firepower on reinvigorating the US operation. This is understandable and probably the right choice, but it shows a lack of confidence and a view that tighter profitability across the whole operation can no longer support losses in Canada."
Nordstrom Canada had about 2,500 employees in Canada, according to the company's statement. Nordstrom did not immediately respond to requests to comment.
The Nordstrom and Nordstrom Rack stores in Canada include:
- Calgary: The Chinook Centre and Deerfoot Meadows
- Edmonton: South Edmonton Common
- Langley, British Columbia: Willowbrook Mall
- Ottawa: Train Yards and The Rideau Centre
- Toronto-area: Heartland Town Centre, Sherway Gardens, The Toronto Eaton Centre, Yorkdale Shopping Centre, One Bloor and Vaughan Mills
- Vancouver: Pacific Centre